Resident Experience - National Apartment Association · Based on information from the applicant’s...

Certified Apartment ManagerSM Participant Workbook Resident Experience

Resident Experience

Participant Workbook

November 2016

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© 2016 National Apartment Association 2


Participant Workbook

Resident Experience

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Table of Contents

Introduction ............................................................................................................................................................................................ 4

Building Relationships................................................................................................................................................................................. 5

Multicultural and Multigenerational Marketplace ....................................................................................................................... 7

Application and Screening Process ................................................................................................................................................... 9

Fees and Deposits ............................................................................................................................................................................... 11

Laws Governing the Screening Process ........................................................................................................................................ 13

Credit Report Definitions .................................................................................................................................................................. 15

Approval and Denial Communications ......................................................................................................................................... 17

Activity: Applicant Screening ...................................................................................................................................................... 21

New Resident Education ........................................................................................................................................................................ 22

Activity: New Resident Information Packet............................................................................................................................ 27

Resident Communication ...................................................................................................................................................................... 28

Resident Programs and Activities ......................................................................................................................................................... 31

Resident Retention and Renewal ........................................................................................................................................................ 32

Activity: Impact of Renewal ........................................................................................................................................................ 35

Move Out Procedures ............................................................................................................................................................................ 36

Eviction Notice Types ......................................................................................................................................................................... 42

Legal Eviction Steps ............................................................................................................................................................................ 42

Community Files and Records .............................................................................................................................................................. 43

File and Retention Guidelines .......................................................................................................................................................... 44

Wrap Up ..................................................................................................................................................................................................... 47

Knowledge Check Answers ................................................................................................................................................................... 53

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Introduction Slide 1

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Building Relationships Slide 4

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Multicultural and Multigenerational Marketplace

Multicultural Multigenerational

• Acknowledge the additional anxiety for those who have not yet mastered English.

• Communicate clearly and explain slowly • Do not stereotype or lump groups together • choose your vocabulary carefully • Avoid negative phrasing • Watch for signs that you have not been

understood • Slow down

Veterans & Boomers: • Show that you’re interested in me. • Ask me questions. • Let’s get to know one another and then

we’ll enjoy doing business together. • Value = Relationship

Gen X & Millennials: • Prove that you’re good. • Prove that you know what you’re doing. • I want a quick, thorough and efficient

transaction. • After you’ve proven this to me, we might

get to know one another. • Value = Time

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Application and Screening Process Slide 12

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Fees and Deposits Ordinances have been enacted by local and state governments that regulate the amount that can be charged for the deposit, what it is used for, or both.

Type Description Refund required

Application fee • Covers the cost of generating a credit report and a criminal background check

No

Holding deposit/ Application deposit/ Administrative fee

• Can be collected by to ensure the applicant is serious about leasing the residence

• May be in addition to or instead of a security deposit Note: Do not collect a deposit from more than one applicant for the same residence. When multiple applicants want the same residence, you may accept other applications.

Refer to company policy.

Security deposit • Ensures the resident will be responsible for costs associated with cleaning, damage and unpaid rent upon vacating the property

Yes, if the costs do not exceed the total of the deposit

Pet deposit • Ensures the pet owner will be responsible for any damage the pet may cause

• A monthly fee may be charged for the pet in addition to the deposit

Refer to company policy

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Laws Governing the Screening Process You must investigate, understand, and uphold all federal and state laws. Consistently applying leasing policies and practices minimizes the risk of discrimination.

Law Description Compliance

Fair Credit Reporting Act (FCRA)

A law that identifies regulations for checking a prospective resident’s credit history

• Inform applicant of consumer report request

• Obtain authorization signature • Adverse Action letter • Maintain records

Fair and Accurate Credit Transaction Act(FACTA)

Broadens the FCRA by extending allowable types of consumer reports and providing descriptions of adverse actions

• Respond correctly to fraud alerts and file blocks

• provide proof and support when supplying collection accounts to credit bureaus

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Credit Report Criteria

Credit Report Term Description

Acceptable Accounts Ratio

Based on information from the applicant’s credit report calculated as: Positive trade lines divided by Positive trade lines + Negative trade lines. When scoring this part of the background check, no trade lines (meaning no credit history) may display on the report and it will be interpreted as approved with conditions. A report of No Record is interpreted as bad credit history and the application will be denied.

Debt to Income Ratio

Based on information from the applicant’s credit report and information entered into the screening program, this is determined as Debt divided by income.

Rent to Income Ratio

Based on information entered into the screening program this is calculated as rent divided by income.

FICO Score

A numerical score calculated by the credit bureau. FICO scores provide the best guide to future risk based solely on credit report data. The higher the score, the lower the risk. The score reflects a mathematical calculation which evaluates a person’s payment history, amounts owed, length of credit history, new credit and types of credit used. The range of possible scores is 300 to 850.

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Approval and Denial Communications

Status Action

Approved • Call the person to explain the status of their application. • Send an approval letter.

Approved with Conditions

• Call the person to explain the status of their application. • Immediately send an adverse action letter that includes

o The contact information for the credit reporting agency that provided the information

o A statement that the agency that provided the report did not make the decision to take the adverse action

o A notice of the right to dispute the accuracy of the information furnished to the agency

• If the adverse action is based on a credit score, the letter must include: o The numerical credit score o Range of possible scores o The key factors that adversely affected the score o The date on which the credit score was created o The name of the person or entity that provided the score

• Provide a specific deadline for making the decision, after which the application will be denied.

Denied • Call the person to explain the status of their application. • Immediately send an adverse action letter that includes

o The contact information for the credit reporting agency that provided information o A statement that the agency that provided the report did not make the decision

to take the adverse action o A notice of the right to dispute the accuracy of the information furnished to the

agency • If the adverse action is based on a credit score, the letter must include:

o The numerical credit score o Range of possible scores o The key factors that adversely affected the score o The date on which the credit score was created o The name of the person or entity that provided the score

• Avoid the word “rejected.” Instead, use “denied,” “not accepted” or “declined.” • Do not disclose specific information from the applicant’s credit report. • The applicant must contact the credit reporting agency to get this information.

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Creekwood Community Criteria Income criteria:

• The applicant must gross 80% of the monthly rent in one week • All income must be verifiable via pay stubs, tax returns of accountant’s statements • No under the table income

Credit criteria:

• Credit score of no less than 600 • Any score under 650 requires a co-signer • All students require a co-signer • Co-signers must have a score of 700 or above plus a minimum of 125% income ratio

Other criteria:

• Deny any applicant that has a negative rental or mortgage history • Deny any applicant that answers yes to the question regarding conviction of a felony

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New Resident Education Slide 37

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Creekwood Orientation Packet 1. 2. 3. 4. 5.

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Resident Communication Slide 48

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Resident Programs and Activities Slide 56

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Resident Retention and Renewal Slide 59

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Impact of Renewal:

Mrs. Jones has lived at Creekwood for almost five years. The market rent on her two bedroom apartment is $700/month and she is currently paying $625/month. You send her a renewal notice and quote her rent at $690.

1. What is the amount of increase Mrs. Jones will pay in a year?

Annual rental revenue = 2. What is the financial impact if Mrs. Jones decides to move because she can’t afford the rent?

Vacancy loss (assume 2 weeks) = Cost to turn vacant unit = Advertising expense plus any leasing commissions =

3. What is the annual rental loss on this unit if you negotiate with Mrs. Jones and adjust her renewal rent to

$675?

Loss of revenue on reducing renewal amount =

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Move Out Procedures Slide 69

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Eviction Notice Types Type of Eviction Notice When it is Used What it Says

Pay rent or Quit Notice Used when the resident has not paid rent Gives the resident a fixed period of time within which to pay rent or move out

Cure or Quit Notice Used when a resident is in violation of a certain condition of the lease

Gives the resident a set period of time in which to correct the violation or face eviction

Unconditional Quit Notice

Used when the resident has repeatedly: • Violated a lease condition • Been frequently late with the rent • Seriously damaged the premises • Engaged in illegal activity • Presents an immediate danger to the

property or other residents

Informs the resident that she/he must vacate the premises without an opportunity to pay rent or correct any violation

Legal Eviction Steps

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Community Files and Records Slide 84

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File and Retention Guidelines

Type of File Retention Guidelines Active Lease files • Ongoing

• Lock in a cabinet at night Inactive Lease files (“dead files”) • Five years Service Request files • Maintain a separate file for each apartment for the life of the community.

• Periodically clean out insignificant work orders (loose drawers, doorknobs, etc.) and return all major items and safety items to the file.

Incident report file • Five years • Maintain records by month and year • Keep copies of all resident notices of activity (criminal activity, policy rule changes)

in a separate section Detailed Unit Status Report/Guest cards

• A minimum of three, preferably four years

Data Backup Diskettes • Daily Backup: One week • Month-end financial reports: Current year • Keep in a fire-safe storage area.

Fair Housing/ADA Modifications /Accommodation Requests

• A minimum of three, preferably four years from date of request

Denied applications • A minimum of three, preferably four years After a resident has moved and the security deposit has been refunded, their file should be placed in “dead files.” These files should be arranged in a logical order (typically alphabetically, by year) and kept separate from active files.

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Resident Experience - National Apartment Association · Based on information from the applicant’s...

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